ECN Forum Forums General Topics of the Trade Business Related Discussion Minimum Rate

there is a huge misconception that if you are flat rate you have to be expensive. You can be the cheapest guy in town and be flat rate.

PE, REW and satcom all made the points.

here is one last one. most contractors that go to flat rate purchase some type of pricing system. as part of that system, to create their flat rate pricing, they have to perform a break even calculation. This determines the cost of doing business.

Once you perform a break even calc, you would be a fool to charge less than it costs you to operate.

most guys who charge T&M, have never performed a break even calc. they just charge the "going rate" and live according to what they can make.

edit to add- this is figuring a small resi/lt commercial service company. Larger commercial companies that do installs will often make money on the install and lose money on service just to keep the customer happy for the next install project.